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Ep 28Why Millions of People Lose Their Money When They Die & How To Avoid It
1:10

Retirement & taxes · 1:10

Under Jewish law, does a wife inherit? The simple answer is no.

Allan Gibber, Esq.

Ep 28Jul 3, 2022

Why Millions of People Lose Their Money When They Die & How To Avoid It

with Allan Gibber, Esq.

What greater legacy would you want for us than Shalom, than peace amongst the family?

Allan Gibber, Esq. (how children can ask reluctant parents to plan)

More moments · 6

1:06
'I don't need a power of attorney, my daughter is on my bank account'
1:21
Son runs the business, daughter gets 30%: here's why that blows up
1:16
No healthcare proxy? A hospital committee may decide for you
1:01
'I can't talk to you, I can only speak to your sister'
0:58
The best way to find a loved one's assets after they die? The mail.
0:39
'Is my will still good after 30 years?' 'For 28 of them it was terrible'

Try this · top 3

Quotes

“A young family needs a will to protect the children in the first instance.”

Allan Gibber, Esq.

“It's never how much I get, it's how much the other guy got.”

Allan Gibber, Esq.

“I would put on the top of the list passwords.”

Allan Gibber, Esq.

“Let every child be entitled to receive information.”

Allan Gibber, Esq.

“Think in five-year horizons.”

Allan Gibber, Esq.

Takeaways

  1. 1 Estate planning isn't only for the wealthy. Without a will, state law splits assets (often half to the spouse, half to the children) and a court picks the children's guardian.
  2. 2 The key documents are a will or trust, a durable power of attorney for money, a health care proxy (also called a medical directive or living will), HIPAA releases, and an asset and password list.
  3. 3 Without a health care proxy, many places let a hospital ethics committee decide. Its quality-of-life standards may not match halacha.
  4. 4 Without a power of attorney, a court appoints a guardian. That means cost, yearly court accountings and public filings. The power of attorney is also where he sees the most abuse among siblings.
  5. 5 A revocable trust can skip probate, which is slow and costly in parts of New York. A pour-over will catches anything left out. Trusts have no minimum size, but ask what you gain.
  6. 6 Florida has no state income or estate tax, while New York's estate tax reaches 16%. Real estate in another state needs its own probate unless it's held in a trust.
  7. 7 Heirs who live in Israel can create trust tax complications under newer Israeli rules.
  8. 8 Under halacha, sons inherit, a firstborn gets a double portion, and wives and daughters have limited rights. Today's normal practice is to leave everything to the spouse and then to the children equally, using a halachic mechanism.
  9. 9 The two main mechanisms are a document of indebtedness that heirs avoid by honoring the will, and a gift that takes effect a moment before death through a kinyan. Size the debt carefully. A kinyan only covers assets you own now, so redo it when you update.
  10. 10 For family businesses, splitting profits between an active child and a passive child breeds tension. Better options: give passive heirs the real estate or equal-value assets, and explain the plan at a family meeting.
  11. 11 Don't send copies of your documents to everyone. It can make you reluctant to change them later.

Full episode

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